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Title: The US government is taking an $8.9 billion stake in Intel

Date: Fri, 22 Aug 2025 22:26:45 +0000
Link: https://www.engadget.com/big-tech/the-us-gove...

President Donald Trump says the US government is taking a 10 percent stake in
chip maker Intel. Trump shared the news during a press conference on Friday,
though an official announcement is still forthcoming, Reuters reports. News
of a plan to convert Intel's previously promised CHIPS Act funding into
equity in the company was first reported earlier in August.

A meeting between Intel CEO Lip-Bu Tan and Trump following the President's
call for Tan to resign seems to be the source of the deal. "He walked in
wanting to keep his job and he ended up giving us 10 billion dollars for the
United States. So we picked up 10 billion," Trump shared during the press
conference.

Intel later announced more details on the investment. The company said in a
press release that the government will "make an $8.9 billion investment in
Intel common stock." It adds that the equity stake will be funded by $5.7
billion previously earmarked for as part of the CHIPS act, and $3.2 billion
awarded as part of the Secure Enclave program. Intel had previously recieved
$2.2 billion in CHIPS grants, making the government's total spend on the
chipmaker $11.1 billion. The government paid $20.47 per share, making the
full investment equivalent to a 9.9 percent stake in the company.

It's important to note that the government investing in Intel is not the same
thing as receiving free money, it's the exact opposite. Despite earlier
comments from US Commerce Secretary Howard Lutnick suggesting the stake would
be non-voting, common stock does come with voting rights. Intel does note
that the investment will be passive, with no board representation, and that
the government has agreed to vote with its board of directors "on matters
requiring shareholder approval, with limited exceptions."

Intel was supposed to receive up to $10.86 billion in federal funding to
expand its chip manufacturing business in the US as part of the CHIPS Act. By
agreeing to this deal, Tan is likely trying to make sure that funding still
goes through, one of several drastic moves to keep Intel afloat. Tan assumed
the title of CEO following Pat Gelsinger's sudden retirement in 2024. Since
taking over, he's already committed to cutting Intel's workforce by 20
percent. Even with lower costs and guaranteed investment, the company's
future is still uncertain: Intel is reportedly struggling to make its next-
gen Panther Lake chips at scale.

The Trump administration says it won't seek similar equity deals with other
recipients of CHIPS act funding. That hasn't stopped them from making other
equally unprecedented financial arrangements. NVIDIA and AMD reportedly
struck a deal with the US government that gives the companies the ability to
export products to China in exchange for 15 percent of their profits.

Update, August 22, 6:20PM ET: This story was updated after publish with more
information on the deal from Intel, and the headline was changed to the
dollar figure, rather than the previously stated "10 percent" amount. A
section quoting US Commerce Secretary Howard Lutnick saying that the stake
was non-voting was also ammended to reflect the final details of the deal.

This article originally appeared on Engadget at https://www.engadget.com/big-
tech/the-us-government-is-taking-an-89-billion-stake-in-intel-
205047795.html?src=rss

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